0001611115-25-000017
SEC filingOmada Health's revenue surged 52% to $116.3M in H1 2025, driven by member growth, while net loss narrowed to $14.8M from $29.7M.
Omada Health's revenue for the first half of 2025 increased 52% year-over-year to $116.3 million, driven by a 49% increase in average total members. Services revenue grew 52% to $106.5 million, and hardware revenue rose 63% to $9.9 million. Gross profit improved 71% to $72.2 million, with gross margin expanding from 55.3% to 62.1%, primarily due to Care Team efficiency initiatives and expanded use of supporting technologies. Operating loss narrowed to $12.7 million from $28.0 million, reflecting operating leverage as revenue growth outpaced expense increases. Net loss improved to $14.8 million from $29.7 million. Basic and diluted net loss per share improved to -$0.98 from -$3.92, with weighted-average shares outstanding increasing to 15.1 million from 7.6 million due to IPO share issuance and conversion of preferred stock.
As of June 30, 2025, cash and cash equivalents totaled $223.1 million, up from $76.4 million at December 31, 2024, largely due to $151.6 million in net IPO proceeds. Total assets more than doubled to $302.9 million. Long-term debt was $30.0 million (net of $1.0 million in unamortized issuance costs), unchanged from year-end. However, on July 31, 2025, the company fully repaid the MidCap Term Facility and Revolving Facility ($31.0 million principal plus $0.4 million accrued interest). Redeemable convertible preferred stock of $449.0 million was converted to common stock in the IPO, eliminating temporary equity. Stockholders' equity turned positive to $214.2 million from a deficit of $384.4 million. Working capital increased to $213.1 million.
Cash used in operating activities in H1 2025 improved to $13.3 million from $28.7 million in H1 2024, reflecting a smaller net loss and favorable working capital changes, particularly a $6.0 million increase in deferred revenue. Free cash flow (operating cash flow less capex and capitalized software) was -$15.8 million. Investing activities used $2.5 million, primarily for capitalized software development. Financing activities provided $162.5 million, driven by IPO proceeds and stock option exercises. The company appears to have ample liquidity following the IPO and debt repayment.
Management highlighted strong growth in total members (752,000 as of June 30, 2025, up from 496,000 a year earlier). Revenue growth was attributed to member expansion and higher average fees per member. Gross margin improvement was driven by Care Team efficiency initiatives and technology support. Sales and marketing expenses increased 31% in H1 2025, partly due to higher channel partner fees. The company emphasized seasonality, with higher enrollment in Q1/Q2 leading to upfront costs and lower gross margins in those quarters. No specific forward guidance was provided. The company continues to invest in R&D and sales to capture market share in the virtual chronic care market. Key risks include reliance on a limited number of channel partners, competition from digital health companies, and regulatory changes in healthcare.